Ministerial Decree Released in Late March to Enable Low-Income Households to Own Apartments for Rp 500 Million
JAKARTA — The Indonesian government, through the Ministry of Housing and Spatial Planning (PKP), is preparing to launch a new ministerial decree expected to transform home ownership prospects for low-income households.
The regulation, scheduled for official release in late March 2026, responds to Indonesia’s housing shortage of 9.6 million units, with the Greater Jakarta area (Jabodetabek) accounting for the highest share at 40.6 per cent.
Housing Minister Maruarar Sirait emphasised that the regulation represents more than mere price adjustment; it constitutes a comprehensive redesign of the vertical housing ecosystem, encompassing sale prices, expanded floor areas, and substantially extended mortgage tenures.
The government recognises that high monthly mortgage instalments represent the primary barrier preventing low-income households from accessing the vertical housing market. To address this, the maximum mortgage tenure for apartment units, previously capped at 20 years, will extend to 30 years. This measure is coupled with a significant interest rate reduction from 10.5 per cent to 6 per cent.
On the supply side, the government has revised construction price indices. The Director General for Urban Housing at the PKP acknowledged that previous price benchmarks no longer attract developer interest due to escalating residential construction costs. Under the new regulation, the government promotes more humane unit size standards of 45 square metres, with estimated selling prices of apartment units financed through the Housing Finance Liquidity Facility (FLPP) projected at approximately Rp 500 million.
BP Tapera, the housing finance distribution institution, has set ambitious targets to absorb at least 10,000 ready-stock apartment units in 2026, whilst targeting 40,000 new apartments eligible for FLPP financing. BP Tapera Commissioner Heru Pudyo Nugroho explained that these targets form part of a broader programme to finance 350,000 homes through FLPP, with state budget allocation reaching Rp 33.7 trillion.